Chapter 6 Flashcards

1
Q

A statement that lists account names and their balances, recorded in debit and credit columns, on a certain day

A

Trial balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The value of inventory that has remained unsold at the end of the financial year

A

Closing inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Goods ready for sale after having gone through the manufacturing process

A

Finished goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Items that are not yet completed and only partly made

A

Work in progress

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Inventory that a business has at the start of the year. Represents an asset and hence will be a debt balance. Last year’s closing inventory

A

Opening inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Errors that occur when a transaction is completely omitted from the books

A

Errors of omission

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Errors that occur when the correct amount is entered, both debit and credit, but one of the entries is made in an account belonging to a different class

A

Errors of principle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Errors that occur when the correct amount is entered, both debit and credit, but in the wrong account of the same class

A

Errors of commission

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Errors that occur when two or more errors cancel each other out

A

Compensating errors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Errors that occur when an incorrect figure was used to record a transaction, both debit and credit

A

Errors of original entry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Recording a total that is more than the true total

A

Overcast

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Totalling

A

Casting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Errors that occur when the correct amounts are used but double entries are made on the wrong side of the accounts concerned

A

Errors of complete reversal of entries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Trial balance

A

A statement that lists account names and their balances, recorded in debit and credit columns, on a certain day

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Closing inventory

A

The value of inventory that has remained unsold at the end of the financial year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Finished goods

A

Goods ready for sale after having gone through the manufacturing process

17
Q

Work in progress

A

Items that are not yet completed and only partly made

18
Q

Opening inventory

A

Inventory that a business has at the start of the year. Represents an asset and hence will be a debt balance. Last year’s closing inventory

19
Q

Errors of omission

A

Errors that occur when a transaction is completely omitted from the books

20
Q

Errors of principle

A

Errors that occur when the correct amount is entered, both debit and credit, but one of the entries is made in an account belonging to a different class

21
Q

Errors of commission

A

Errors that occur when the correct amount is entered, both debit and credit, but in the wrong account of the same class

22
Q

Compensating errors

A

Errors that occur when two or more errors cancel each other out

23
Q

Errors of original entry

A

Errors that occur when an incorrect figure was used to record a transaction, both debit and credit

24
Q

Overcast

A

Recording a total that is more than the true total

25
Casting
Totalling
26
Errors of complete reversal of entries
Errors that occur when the correct amounts are used but double entries are made on the wrong side of the accounts concerned
27
What are the purposes and uses of a trial balance?
To prepare the income statement and the statement of financial position To verify accounting records To help locate errors
28
Which errors will show up in the trial balance?
Arithmetical errors, using different figures for matching debit/credit entries, entering only one aspect of a transaction, entering a transaction twice on one side (two credits instead of a debit and a credit)
29
Which errors don't show up on the trial balance?
Compensating errors, errors of commission, errors of complete reversal, errors of omission, errors of original entry, errors of principle